Fed can't control repo market problem, creating issues, says Gundlach - Business Insider

📆 19/12/2019 17:12:00
📰 BusinessInsider

⏱ Reading Time:
16 sec. here
2 min. at publisher
📊 Quality Score:
News: 10%
Publisher: 51%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

'I take that as a very bad sign': Billionaire bond king Jeffrey Gundlach explains how the Fed's inability to control the repo rate is masking deeper issues

. "It depends how you want to frame what is going on with the Fed increasing its balance sheet — pumping more reserves — to try to deal with the out-of-control repo problem that started up September 17th."

Below is a chart depicting spikes in the repo rate juxtaposed against the fed funds rate. In theory, both rates should mirror one another with little variance.To Gundlach, the rate action taking place in the repo market is alarming — and there must be an explanation for this sudden, unexpected increase.

Write Comment

king and rich

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

These are the best photos Business Insider took in 2019 - Business InsiderThe year in pictures: From iconic IPOs to the backstage of Carnegie Hall, these are the best photos from Business Insider in 2019
Source: BusinessInsider - 🏆 729. / 51 Read more »